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Coa and indexation

CA MOSIN KHAN (Chartered Accountant) (22 Points)

27 June 2018

What wiil be the COA and indexation in case where a person sold property in f.y. 17-18, received from his mother by way of gift and mother received this property on death of her husband in 2010 without consideration and Husband bought this property in year 1960 .

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3 Replies

Srikanth Yekkaldevi (179 Points)
Replied 27 June 2018

Calculate taking 100 as the base index and cost should be the fair value on 1/4/1981.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195428 Points)
Replied 27 June 2018

COA will be FMV as arrived by Governmental approved valuer as on 01.04.2001.

The indexed value of the property in FY 2017-18, would be 2.72 times the FMV (as of 01.04.2001)

Rahul Prajapati (Student) (2282 Points)
Replied 27 June 2018

Cost of the property – The property did not cost anything to the inheritor, but for calculation of capital gain the cost to the previous owner is considered as the cost of acquisition of the Property. i.e; cost to your Father.

Indexation of cost – The year of acquisition of the previous owner is considered for the purpose of indexation of the cost of acquisition. As Previous Owner in your case was your Mother. i.e; ICOA will be taken on 2009-2010